REPUBLICANS
Rudy Giuliani: Opposes congressional intervention. Favors private-sector action to prevent foreclosures. Says lenders and their investors should take responsibility for making risky loans. Prefers that lenders renegotiate mortgages with borrowers.
Mike Huckabee: Opposes a bailout of the lending institutions or their investors. Also opposes a bailout for borrowers caught in the crisis. Says lenders should be pressured to refinance loans so that rates rise more slowly and affordably.
John McCain: Generally opposed to federal intervention but says the crisis may require measures to limit the fallout and to assist the truly needy. Wants more consumer education and more rigorous regulatory enforcement.
Ron Paul: Says government intervention in the financial sector created the crisis. Believes the Federal Reserve's loose monetary policy and federal mortgage programs, such as Fannie Mae and Freddie Mac, have distorted the normal working of the housing market.
Mitt Romney: Opposes a broad federal bailout, but says the federal government should refinance some loans at more stable rates. Would help middle-class Americans meet their mortgage obligations by eliminating the income tax on interest, capital gains and dividends.
DEMOCRATS
Hillary Rodham Clinton: Would expand government-lending programs to stabilize the mortgage market and set up a $1 billion fund to assist state programs that help at-risk borrowers avoid foreclosure. Wants laws to crack down on unscrupulous mortgage brokers and abuses in mortgage lending.
John Edwards: Supports the Bush administration plan for lenders to voluntarily freeze rates but says it's not enough. Would create a Home Rescue Fund to help families move into affordable mortgages and allow bankruptcy judges to rewrite mortgages on family homes. Would seek to prevent a future crisis by passing a strong law against predatory lending and by creating a new federal regulator for the financial services industry.
Dennis Kucinich: Opposes a federal bailout of creditors. Supports a bill giving federal tax relief to families losing their homes in the crisis. The legislation would exclude taxes homeowners must pay on debt that is forgiven by banks.
Barack Obama: Supports comprehensive legislation to combat fraud and abuse in the mortgage industry. Proposes a fund to help people refinance mortgages and offset the cost of selling homes. Would waive certain federal, state and local income taxes that result from the sale of homes to avoid foreclosure.
